JEDDAH – New York-based Van Eck investment management firm has filed recently with the Security and Exchange Commission (SEC) for two Saudi Arabia Exchange-Traded Funds (ETFs), making this a first-to-market proposal:
- Market Vectors Saudi Arabia ETF: This ETF seeks to replicate the price and yield performance of the Market Vectors Saudi Arabia Index. The underlying index is comprised of companies that are domiciled and publicly traded in the country, or generate at least 50% of their revenues from Saudi Arabia. The filing also specifies that exposure will be concentrated in the financial services and basic materials sectors.
- Market Vectors Saudi Arabia Small-Cap ETF: This ETF seeks to replicate the price and yield performance of the Market Vectors Saudi Arabia Small-Cap Index, offering investors a compelling way of tapping into Kingdom’s economy. The underlying index has the same requirements for inclusion as the previously mentioned broad Saudi Arabia ETF. The distinguishing feature is that this ETF is focused on small cap securities, although it isn’t exactly clear how much overlap, if any, there will be between the portfolios of the two proposed funds. – SG